Guayanilla, Puerto Rico – February 27, 2026 — Governor Jenniffer González-Colón of Puerto Rico, continues implementing her administration’s plan to modernize the Island’s electric system through the strategic and responsible use of federal funds. Today, alongside Genera PR, the Governor formally launched the construction of new rapid-start “Peaker” generation units and a Battery Energy Storage System (BESS) project at the Costa Sur Power Plant.
“From day one, my mission has been to stabilize, diversify, and optimize our power grid while lowering costs for our people. In this first year, we have made significant progress in transforming Puerto Rico’s energy system by increasing generation capacity by 1,200 megawatts; launching competitive procurements for 3,000 megawatts of permanent generation and 800 megawatts of temporary generation; rehabilitating units that were previously offline; advancing critical improvements and repairs with the direct allocation of $365 million from the U.S. Department of Energy in October; and initiating major modernization and generation diversification projects, including the acquisition of 430 megawatts of energy storage using Tesla Megapack technology. Today, we continue that progress with this landmark project and the launch of the Peakers program,” said Governor González-Colón.
“Peakers” are turbines, primarily fueled by natural gas, designed for rapid start-up, unlike conventional turbines, making them ideal for periods of peak energy demand.
At Costa Sur, the largest installation under the Island-wide Peakers program will be developed, adding 100 megawatts (MW) of flexible generation capacity to strengthen system reliability during high-demand periods. The project includes the installation of two Siemens Energy SGT-800 turbines, designed to replace units from the 1970s with modern technology that offers faster start-up times and greater efficiency. These turbines can operate on liquefied natural gas (LNG) and diesel, providing greater operational flexibility, optimized fuel costs, and enhanced energy security.
Federal funding secured by Governor González-Colón while serving as Puerto Rico’s Resident Commissioner totals $446.2 million for the purchase and installation of equipment for the Peakers project at Costa Sur. These units will be capable of coming online within minutes to meet peak demand and reinforce the stability of the electric grid. The installation is expected to be operational by the end of 2027.
Island-wide, the Peakers program will add 244 MW of flexible generation capacity across the Costa Sur, Yabucoa, Jobos, and Daguao power plants through the installation of eight new turbines. The total federal investment for the program amounts to $867 million.
In parallel, Genera PR is advancing the Battery Energy Storage System (BESS) project at Costa Sur, which will provide 30 MW of storage capacity with a federal investment of $72.8 million. The installation will include 40 Tesla Megapack batteries to strengthen the generation system in Puerto Rico’s southern region.
Across Puerto Rico, the BESS program will deploy 430 MW of battery storage capacity across six power plants, representing a total federal investment of $767 million. Of the 564 batteries included in the project, 164 units have already arrived to Puerto Rico. The initiative represents the largest battery storage deployment currently being developed by Tesla in the United States and is expected to reduce generation-related load shedding by up to 90 percent, improve grid stability, facilitate greater integration of renewable energy sources, and generate significant savings in production costs.
“The start of construction at Costa Sur demonstrates that the modernization of Puerto Rico’s electric system is already underway. We are replacing obsolete infrastructure with modern, flexible, and efficient technology. These projects reflect the responsible and transparent use of federal funds to strengthen grid reliability and reaffirm our commitment to building a more resilient energy network prepared for Puerto Rico’s future,” said Iván Báez-Santiago, Vice President of Public and Government Affairs at Genera PR.
“The Costa Sur Power Plant remains one of our most important generating facilities due to its capacity and operational versatility. In addition to strengthening Costa Sur with Tesla battery systems and Peaker units, modernization and reconstruction work has also been carried out on critical components essential to the plant’s optimal operation,” Governor González-Colón added.
With the simultaneous development of the Peakers and BESS projects, Genera PR continues implementing one of the most significant energy modernization initiatives in Puerto Rico’s recent history, focused on strengthening system reliability, improving operational efficiency, and supporting the transformation of the Island’s electric grid.
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